Fitch Ratings has downgraded the ratings of both outstanding classes of Navient Student Loan Trust (Navient) 2015-1.

The Rating Outlooks are Negative. Fitch has also affirmed the ratings of all outstanding classes of Navient Student Loan Trust 2014-1 and Navient Student Loan Trust 2014-8 and maintained their current Outlooks.

RATING ACTIONS

Entity / Debt

Rating

Prior

Navient Student Loan Trust 2014-8

A-3 63939DAC9

LT

AAAsf

Affirmed

AAAsf

B 63939DAD7

LT

Asf

Affirmed

Asf

Navient Student Loan Trust 2015-1

A-2 63939FAB6

LT

Asf

Downgrade

AAsf

B 63939FAC4

LT

Asf

Downgrade

A+sf

Navient Student Loan Trust 2014-1

A-3 63938EAC8

LT

BBsf

Affirmed

BBsf

A-4 63938EAD6

LT

Asf

Affirmed

Asf

B 63938EAE4

LT

BBsf

Affirmed

BBsf

Page

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VIEW ADDITIONAL RATING DETAILS

Transaction Summary

Navient 2014-1: The transaction continues to face increased maturity risk due to the increasing remaining term, now at 184 months from 174 months at the prior review in February 2022. The class A-3 notes have been affirmed at 'BBsf'. The rating is within the two category tolerance of the model-implied rating of 'Bsf' for surveillance for maturity stress failure with more than seven years remaining to maturity with a legal final maturity date of June 25, 2031.

The class A-4 notes have been affirmed at 'Asf' due to the transaction's increased maturity risk. The rating of this class is maintained at no more than two rating categories above the preceding senior notes, consistent with Fitch's rating criteria. The class B notes have been affirmed at 'BBsf', as this rating is constrained by the rating of the class A-3 notes. The Rating Outlook for all the notes remains Negative, reflective of the possibility of further negative rating pressure in the next one to two years if the remaining term continues to increase.

Navient 2014-8: The affirmations of the outstanding notes reflect the stable collateral performance for the transaction, in line with Fitch's expectations since the last review. The class A-3 notes pass all maturity stresses and credit stresses up to 'AAsf' with low maturity risk and sufficient hard credit enhancement (CE). The notes face a one-time liquidity constraint in cashflow modeling that Fitch deemed immaterial.

The model-implied rating is within one rating category of the current rating, as permitted by Fitch's Federal Family Education Loan Program (FFELP) rating criteria. The class B notes pass credit and maturity stresses for their respective ratings with low maturity risk and sufficient hard CE. The Outlooks on the notes remain Stable.

Navient 2015-1: Both class A-2 and B notes have been downgraded to 'Asf' from 'AAsf' and 'A+sf', respectively, due to increased maturity risk for the transaction in Fitch's cashflow modelling. The weighted average remaining term increased to 185 months from 173 months since the last review, higher than expectations. The model-implied ratings are 'BBsf' and 'BBBsf' for the class A-2 and B notes, respectively.

The ratings are within the two category tolerance of the model-implied rating for surveillance for maturity stress failure with more than seven years remaining to maturity with a legal final maturity date for the class A-2 notes of April 25, 2040. The Outlook on the class A-2 notes remains Negative, while the Outlook on the class B notes was revised to Negative from Stable, reflecting the possibility of further negative rating pressure in the next one to two years if maturity risk for the A-2 class increases.

KEY RATING DRIVERS

U.S. Sovereign Risk: The trust collateral comprises 100% Federal Family Education Loan Program (FFELP) loans with guaranties provided by eligible guarantors and reinsurance provided by the U.S. Department of Education (ED) for at least 97% of principal and accrued interest. The U.S. sovereign rating is currently 'AAA'/Outlook Stable.

Collateral Performance: For all transactions, Fitch applies the standard default timing curve in its credit stress cash flow analysis. Additionally, defaults have remained in line with expectations, while consolidation from the Public Service Loan Forgiveness Program is driving the short-term inflation of CPR. The claim reject rate is assumed to be 0.25% in the base case and 2.00% in the 'AAA' case.

Navient 2014-1: Based on transaction-specific performance to date, Fitch assumes a cumulative default rate of 22.00% under the base case scenario and a default rate of 62.03% under the 'AAA' credit stress scenario. After applying the default timing curve per criteria, the effective default rate is unchanged from the cumulative default rate. Fitch is maintaining the sustainable constant default rate (sCDR) of 3.20% and the sustainable constant prepayment rate (sCPR; voluntary and involuntary prepayments) of 11.00% in cash flow modeling.

The trailing-12-month (TTM) levels of deferment, forbearance, and income-based repayment (IBR; prior to adjustment) are 5.35% (5.66% at Feb. 28, 2022), 16.37% (15.30%) and 25.00% (28.20%). These assumptions are used as the starting point in cash flow modelling and subsequent declines or increases are modelled as per criteria. The 31-60 DPD and the 91-120 DPD have declined from one year ago and are currently 3.65% for 31 DPD and 1.31% for 91 DPD compared to 6.68% and 2.01% at Feb. 28, 2022 for 31 DPD and 91 DPD, respectively. The borrower benefit is approximately 0.08%, based on information provided by the sponsor.

Navient 2014-8: Based on transaction-specific performance to date, Fitch assumes a cumulative default rate of 39.25% under the base case scenario and a default rate of 100.00% under the 'AAA' credit stress scenario, with an effective default rate of 97.39% after applying the default curve, as per criteria. Fitch is maintaining the sCDR of 5.30% and the sCPR of 9.00% in cash flow modeling.

The TTM levels of deferment, forbearance, and IBR are 6.04% (6.27% at Feb. 28, 2022), 19.43% (18.39%) and 22.17% (24.93%). These assumptions are used as the starting point in cash flow modelling and subsequent declines or increases are modelled as per criteria. The 31-60 DPD and the 91-120 DPD have declined from one year ago and are currently 4.65% for 31 DPD and 2.07% for 91 DPD compared to 7.51% and 2.24% at Feb. 28, 2022 for 31 DPD and 91 DPD, respectively. The borrower benefit is approximately 0.03%, based on information provided by the sponsor.

Navient 2015-1: Based on transaction-specific performance to date, Fitch assumes a cumulative default rate of 37.00% under the base case scenario and a default rate of 100.00% under the 'AAA' credit stress scenario, with an effective default rate of 98.82% after applying the default curve, as per criteria. Fitch is maintaining the sCDR of 4.80% and the sCPR of 9.50% in cash flow modeling.

The TTM levels of deferment, forbearance, and IBR are 4.90% (5.56% at Feb. 28, 2022), 18.72% (17.61%) and 23.86% (25.63%). These assumptions are used as the starting point in cash flow modelling and subsequent declines or increases are modelled as per criteria. The 31-60 DPD and the 91-120 DPD have declined from one year ago and are currently 3.93% for 31 DPD and 2.20% for 91 DPD compared to 6.89% and 2.40% at Feb. 28, 2022 for 31 DPD and 91 DPD, respectively. The borrower benefit is approximately 0.03%, based on information provided by the sponsor.

Basis and Interest Rate Risk: Basis risk for these transactions arises from any rate and reset frequency mismatch between interest rate indices for Special Allowance Payments (SAP) and the securities. As of the most recent distribution date, for Navient 2014-1, approximately 97.45% of the student loans are indexed to LIBOR, and 2.55% are indexed to the 91-day T-bill rate. For Navient 2014-8, approximately 90.66% of the student loans are indexed to LIBOR, and 9.34% are indexed to the 91-day T-bill rate.

For Navient 2015-1, approximately 86.76% of the student loans are indexed to LIBOR, and 13.24% are indexed to the 91-day T-bill rate. All the notes in the three transactions are indexed to one-month LIBOR. Fitch applies its standard basis and interest rate stresses to the transactions as per criteria.

Payment Structure: Credit enhancement (CE) is provided by overcollateralization (OC), excess spread and for the class A notes, subordination. As of the most recent collection period, Fitch's senior parity ratios (including the reserve) are 110.99% (9.90% CE), 110.37% (9.40% CE) and 108.85% (8.13% CE) for Navient 2014-1, 2014-8 and 2015-1, respectively. The total parity ratios are 101.58% (1.56% CE), 101.31% (1.29% CE) and 101.52% (1.50% CE) for Navient 2014-1, 2014-8 and 2015-1, respectively.

Liquidity support is provided by a reserve account currently sized their floors of $748,891 and $1,019,764 for Navient 2014-1 and Navient 2014-8, respectively, and at 0.25% of the outstanding pool balance ($1,004,522) for Navient 2015-1. The transactions will continue to release cash as long as the target OC is maintained.

Operational Capabilities: Day-to-day servicing is provided by Navient Solutions. LLC. Fitch believes Navient to be an adequate servicer, due to its extensive track record as one of the largest servicers of FFELP loans.

RATING SENSITIVITIES

Factors that could, individually or collectively, lead to negative rating action/downgrade:

'AAAsf' rated tranches of most FFELP securitizations will likely move in tandem with the U.S. sovereign rating given the strong linkage to the U.S. sovereign, by nature of the reinsurance provided by the Department of Education. Aside from the U.S. sovereign rating, defaults, basis risk and loan extension risk account for the majority of the risk embedded in FFELP student loan transactions.

This section provides insight into the model-implied sensitivities the transaction faces when one assumption is modified, while holding others equal. Fitch conducts credit and maturity stress sensitivity analysis by increasing or decreasing key assumptions by 25% and 50% over the base case. The credit stress sensitivity is viewed by stressing both the base case default rate and the basis spread. The maturity stress sensitivity is viewed by stressing remaining term, IBR usage and prepayments. The results below should only be considered as one potential outcome, as the transaction is exposed to multiple dynamic risk factors. It should not be used as an indicator of possible future performance.

Navient Student Loan Trust 2014-1

Current Ratings: class A-3 'BBsf'; class A-4 'Asf'; class B 'BBsf'.

Current Model-Implied Ratings: class A-3 'Asf' (Credit Stress) / 'Bsf' (Maturity Stress); class A-4 'Asf' (Credit Stress) / 'BBBsf' (Maturity Stress); class B 'Asf' (Credit Stress) / 'AAAsf' (Maturity Stress).

Credit Stress Rating Sensitivity

Default increase 25%: class A-3 'BBsf'; class A-4 'Asf'; class B 'BBsf';

Default increase 50%: class A-3 'BBsf'; class A-4 'Asf'; class B 'BBsf';

Basis spread increase 0.25%: class A-3 'BBsf'; class A-4 'Asf'; class B 'BBsf';

Basis spread increase 0.50%: class A-3 'BBsf; class A-4 'Asf'; class B 'BBsf'.

Maturity Stress Rating Sensitivity

CPR decrease 25%: class A-3 'CCCsf'; class A-4 'CCCsf'; class B 'BBsf';

CPR decrease 50%: class A-3 'CCCsf'; class A-4 'CCCsf'; class B 'BBsf';

IBR usage increase 25%: class A-3 'CCCsf'; class A-4 'BBBsf'; class B 'BBsf';

IBR usage increase 50%: class A-3 'CCCsf; A-4 'BBsf'; class B 'BBsf';

Remaining Term increase 25%: class A-3 'CCCsf'; class A-4 'Bsf'; class B 'BBsf';

Remaining Term increase 50%: class A-3 'CCCsf'; class A-4 'CCCsf'; class B 'BBsf'.

Navient Student Loan Trust 2014-8

Current Ratings: class A-3 'AAAsf'; class B 'Asf'.

Current Model-Implied Ratings: class A-3 'AAsf' (Credit Stress) / 'AAAsf' (Maturity Stress); class B 'Asf' (Credit Stress) / 'AAAsf' (Maturity Stress).

Credit Stress Rating Sensitivity

Default increase 25%: class A 'AAsf'; class B 'BBBsf';

Default increase 50%: class A 'AAsf'; class B 'BBBsf';

Basis spread increase 0.25%: class A 'AAsf'; class B 'Asf';

Basis spread increase 0.50%: class A 'AAsf; class B 'BBBsf'.

Maturity Stress Rating Sensitivity

CPR decrease 25%: class A 'AAAsf'; class B 'Asf';

CPR decrease 50%: class A 'AAAsf'; class B 'Asf';

IBR usage increase 25%: class A 'AAAsf'; class B 'Asf';

IBR usage increase 50%: class A 'AAsf; class B 'Asf';

Remaining Term increase 25%: class A 'AAAsf'; class B 'Asf';

Remaining Term increase 50%: class A 'AAsf'; class B 'BBBsf'.

Navient Student Loan Trust 2015-1

Current Ratings: class A-2 'Asf'; class B 'Asf'.

Current Model-Implied Ratings: class A-2 'Asf' (Credit Stress) / 'BBsf' (Maturity Stress); class B 'BBBsf' (Credit Stress) / 'AAAsf' (Maturity Stress).

Credit Stress Rating Sensitivity

Default increase 25%: class A 'BBBsf'; class B 'BBBsf';

Default increase 50%: class A 'BBBsf'; class B 'BBBsf';

Basis spread increase 0.25%: class A 'Asf'; class B 'BBBsf';

Basis spread increase 0.50%: class A 'Asf; class B 'BBBsf'.

Maturity Stress Rating Sensitivity

CPR decrease 25%: class A 'CCCsf'; class B 'Asf';

CPR decrease 50%: class A 'CCCsf'; class B 'Asf';

IBR usage increase 25%: class A 'BBsf'; class B 'Asf';

IBR usage increase 50%: class A 'Bsf; class B 'Asf';

Remaining Term increase 25%: class A 'CCCsf'; class B 'Asf';

Remaining Term increase 50%: class A 'CCCsf'; class B 'Asf'.

Factors that could, individually or collectively, lead to positive rating action/upgrade:

Navient Student Loan Trust 2014-1

Credit Stress Sensitivity

Default decrease 25%: class A-3 'AAsf'; class A-4 'AAsf'; class B 'Asf';

Basis Spread decrease 0.25%: class A-3 'Asf'; class A-4 'Asf'; class B 'Asf'.

Maturity Stress Sensitivity

CPR increase 25%: class A-3 'Asf'; class A-4 'Asf'; class B 'AAAsf';

IBR usage decrease 25%: class A-3 'BBsf'; class A-4 'Asf'; class B 'AAAsf';

Remaining Term decrease 25%: class A-3 'Asf'; class A-4 'AAAsf'; class B 'AAAsf'.

Navient Student Loan Trust 2014-8

Credit Stress Sensitivity

Default decrease 25%: class A 'AAAsf'; class B 'AAsf';

Basis Spread decrease 0.25%: class A 'AAsf'; class B 'Asf'.

Maturity Stress Sensitivity

CPR increase 25%: class A 'AAAsf'; class B 'AAAsf';

IBR usage decrease 25%: class A 'AAAsf'; class B 'AAAsf';

Remaining Term decrease 25%: class A 'AAAsf'; class B 'AAAsf'.

Navient Student Loan Trust 2015-1

Credit Stress Sensitivity

Default decrease 25%: class A 'Asf'; class B 'Asf';

Basis Spread decrease 0.25%: class A 'Asf'; class B 'BBBsf'.

Maturity Stress Sensitivity

CPR increase 25%: class A 'Asf'; class B 'AAAsf';

IBR usage decrease 25%: class A 'BBBsf'; class B 'AAAsf';

Remaining Term decrease 25%: class A 'AAAsf'; class B 'AAAsf'.

Best/Worst Case Rating Scenario

International scale credit ratings of Structured Finance transactions have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of seven notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of seven notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAAsf' to 'Dsf'. Best- and worst-case scenario credit ratings are based on historical performance. For more information about the methodology used to determine sector-specific best- and worst-case scenario credit ratings, visit https://www.fitchratings.com/site/re/10111579.

USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10

Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action.

REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING

The principal sources of information used in the analysis are described in the Applicable Criteria.

ESG Considerations

Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. For more information on Fitch's ESG Relevance Scores, visit www.fitchratings.com/esg.

Additional information is available on www.fitchratings.com

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